men’s wearhouse - All posts tagged men’s wearhouse

The drama between Jos. A. Bank and Men’s Wearhouse has finally come to an end, with the former — the smaller of the two companies — securing an admirable $1.8 billion offer from the latter. The saga will be remembered in the retail industry record books, industry watchers said.

The back-and-forth jostling between Men’s Wearhouse and Jos. A. Bank that first came to light in October has finally come to a close: Men’s Wearhouse said it will buy Jos. A. Bank for $65 a share in cash, or a total of $1.8 billion.

Men’s Wearhouse shares have risen in each of the past four trading sessions, up a total of 14%, since the news broke that hedge fund Eminence Capital has bought a 9.8% stake to be the company’s largest shareholder.

More importantly, Eminence also urged the clothing retailer to explore various options and engage in conversations with its smaller rival Jos. A Bank. Men’s Wearhouse has rejected Jos. A. Bank’s public proposal for a tie-up, including the possibility of raising its offer if it deems warranted after due diligence.

While Men’s Wearhouse investors may like what the board says and sends stock higher after four declines, they may need to take heed of potential public backlash in wake of the company firing its public face and founder George Zimmer.

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Behind the Storefront is a blog about all things retail. It’s aimed at investors, shoppers and anyone else with a passion for learning about what drives consumer behavior. Hosted by Andria Cheng, Behind the Storefront will cover the business, brands and shopping behavior that’s behind some of the biggest companies, and largest employers, in the world. You can reach Andria at Acheng@marketwatch.com.